Summary
U.S. President Donald Trump said on Thursday evening he intends to levy a 50% tariff on all aircraft manufactured in Canada if the country does not certify several jets produced by Gulfstream. At the same time he announced his administration will "decertify" planes built by Bombardier Inc (TSX:BBDb), including the Bombardier Global Express.
Details
In a post on Truth.Social, the President stated: "We are hereby decertifying their Bombardier Global Expresses, and all Aircraft made in Canada, until such time as Gulfstream, a Great American Company, is fully certified." He followed that with an additional warning: "If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America."
Those comments arrived shortly after a separate announcement earlier in the week in which the President threatened to impose 100% tariffs on Canada, saying such action would essentially block the country from trade with the U.S. if it moved forward with a trade agreement with China. The most recent statements represent a continuation of tensions between the two countries that the article characterizes as a year-long spat that began soon after the President took office last year and included proposals for steep tariffs on Canada.
Market and sector implications
The declarations directly reference aerospace manufacturers and cross-border trade in aircraft. The actions described - decertification of specific Bombardier models and the potential imposition of a 50% tariff on Canadian-built aircraft - would affect aircraft makers, their suppliers, and sectors tied to international aircraft sales and certification.
Key points
- President Trump said on Thursday evening he will impose a 50% tariff on Canadian aircraft sold in the U.S. if certification issues with Gulfstream jets are not resolved.
- He announced that his administration will "decertify" Bombardier Inc (TSX:BBDb) planes, specifically naming the Bombardier Global Express.
- The statements follow an earlier threat by the President to impose 100% tariffs on Canada related to a potential trade deal with China and continue a year-long dispute between the two countries.
Risks and uncertainties
- Uncertainty over certification status: The President tied tariffs to certification actions for Gulfstream jets; the outcome of those certification discussions is not detailed in the statements.
- Potential for broad trade disruption: The threat to impose steep tariffs could disrupt aircraft trade flows and affect aerospace manufacturers and suppliers involved in cross-border commerce.
- Escalation of bilateral tensions: The moves are part of a longer-running dispute between the countries, and the path forward is unclear based on the public statements alone.
Note: The article reports the President's public statements and described actions as provided. It does not add additional details beyond those statements.